Abstract

REPORT HIGHLIGHTS

More than $423 billion worth of portable battery-powered products were sold in
2010, up from $410 billion sold in 2006. The market is estimated to reach
$479.6 billion by the end of 2011, and will reach more than $611 billion by
2016, growing at a compound annual growth rate (CAGR) of 5%.

The communication/multi-functional segment accounts for roughly 30% of the
total portable battery-powered product market. This segment is projected to
reach nearly $141 billion in 2011 and will grow to $181.5 billion by 2016 at a
CAGR of 5.2%.

Computers are the second largest market segment with a 28% share. BCC
forecasts this market segment will reach $133 billion by the end of 2011 and
reach nearly $189 billion by 2016 at a CAGR of 7.2%.

REPORT SCOPE

INTRODUCTION

STUDY GOALS AND OBJECTIVES

The market for portable, battery-powered products has grown from a few
well-established niches such as flashlights and wristwatches to a diverse,
rapidly growing market that encompasses computing, communications,
entertainment, photographic, and publishing products; a variety of cordless
tools; and entirely new classes of military and medical products. This
diversity has been accomplished because of a unique synergy between the
products themselves, the batteries they employ, and the battery chargers and
power-management systems that recharge the batteries.

Several entirely new classes of batteries have been commercialized during the
past 25 years, including nickel-metal hydride, zinc-air, lithium polymer, and
the widely used lithium-ion design. Meanwhile, improved microelectronic
battery charger controller technology allows the commercialization of
higher-performance, smaller, and safer designs. This, in turn, has allowed
for the commercialization of portable products that would be impossible
without improved battery chargers, notably portable computers, cell phones,
digital cameras, multi-functional touch-screen devices, and cordless hand
tools. At the same time, competitively priced no rechargeable primary
batteries remain established power sources for many kinds of portable products.

As this synergy continues to develop, there are areas in which the portable
product, battery, and battery charger industries could experience the
explosive growth usually associated with emerging industries. Battery
designers, mainly electrochemists, and battery charger designers, mainly
electrical and electronics specialists, will continue to operate together,
with new batteries and new battery chargers evolving in tandem to produce even
higher-performance products.

This has changed how portable product batteries are marketed. All batteries
degrade and must be replaced, usually much sooner than the products they
power. In the past, this was addressed by using removable and replaceable
batteries that could be interchanged between different devices, or through an
aftermarket for the replacement of original equipment manufacturer (OEM)
batteries. Portable product designers now recognize the long-term value
stream represented by the batteries, and they jealously guard their control of
this stream by designing batteries devices that can only be powered by
batteries that they sell. This has created a whole new supply chain category
that has elements of both the OEM stream and the aftermarket.

REASONS FOR DOING THE STUDY

After spectacular growth, the portable battery-powered product market is
retrenching. Overall sales for some market sectors are level. In other
cases, whole new classes of products are proliferating at the expense of once
popular lines. Technical advances and a realignment of product, battery, and
charger industry players must be matched by new marketing attitudes.
Alternately, battery designers and battery charger designers must continue to
cooperate to meet more demanding design requirements. With this in mind, this
analysis is intended to be the most complete technical, economic, and business
document of this type on battery-powered products and is designed to provide
information of a professional nature. The technical data are dependent upon
the accuracy of the manufacturers and technical sources that helped to make up
the BCC Research database.

SCOPE OF REPORT

This report organizes the portable product industry into the following market
sectors:

These battery power sources are also compared to two new portable power
supplies: ultracapacitors and fuel cells. Again, each battery market sector
is defined, the leading companies are identified, and the market is analyzed,
with the inclusion of a 5-year market prediction. Finally, OEM and
charging-station battery charger markets are analyzed.

INTENDED AUDIENCE

This report, which is intended to provide a unique analysis of the global
portable battery-powered product market, will be of interest to manufacturers
of battery chargers and battery charger components, as well as a variety of
portable product makers. It will also be valuable to those involved in
secondary battery development and marketing, as well as those offering
competing nonrechargeable batteries. Nonbattery power source makers, such as
fuel-cell and ultracapacitor makers, can use this report to assess the
ultimate size of their target markets. Current and potential battery
consumers, as well as those in the military and the medical professions, can
determine existing or potential portable product, battery, or battery charger
markets. These end users will learn which designs their battery systems will
and will not allow. BCC wishes to thank those companies, government agencies,
and university researchers who contributed information for this report.

METHODOLOGY AND INFORMATION SOURCES

Both primary and secondary research methodologies were used in preparing this
report, which is based on interviews with commercial and government sources,
literature reviews, and patent examinations. An in-depth analysis of
technical and business literature and published dissertations; a review of the
history of the technologies involved; and interviews with industry experts,
company representatives, federal government researchers, and university
scientists provides an assessment of the outlook for alternative electrical
power storage. Other information sources include product literature from
suppliers, scientific references, conferences, and patent searches.

Market assumptions used in this report include those based on updates of
material from an earlier version of this analysis, as well as from the BCC
Research study Lithium Batteries: Markets and Materials. This report's author
prepared these studies as well. Although many segments of the industry are
well-documented, much of this information is based on estimates rather than
hard facts. The distinction between these estimates and hard facts can be
vital, and sources are identified wherever possible. When appropriate,
information from previously published sources is identified to allow for a
more detailed examination.

ANALYST CREDENTIALS

Donald Saxman is the editor of BCC Research's Fuel Cell Industry Report and
Hybrid and Electric Vehicle Progress newsletters and has founded several other
BCC newsletters. Mr. Saxman has more than 28 years of experience in market
analysis, technical writing, and newsletter editing. Since 1983, he has
operated as a technical market consultant and subcontractor to BCC Research,
and in this capacity, he has prepared more than 80 technology market research
reports, including many covering battery technology and battery markets. His
previous experience includes maintaining supervision of a quality-control
laboratory at a major secondary lead refinery, serving as an analytical
chemist at a hazardous waste testing service, holding the position of product
assurance manager for a space station life-support system project, and serving
as an information technology business analyst and project manager.